Infrastructure Now!

Will Politics Prevent It? Were you forwarded this email? [Sign-up to The Daily Reckoning here.]( [Unsubscribe]( [Daily Reckoning] Infrastructure Now! - “Wherever you look, there are flashing red signs that America needs to kick it into gear on infrastructure investment and start renovating and constructing yesterday”… - What exactly is “infrastructure?”… - How do we pay for it all?… Recommended Link [“What’s happening right now is 100% un-American”]( [Read more here...]( Have you seen this? It’s completely un-American and could be the #1 threat to your money right now. It’s why a former Managing Director at Goldman Sachs says, “It’s a rigged system… and regular Americans need to know what’s really happening.” You can catch her full take by going here now. WARNING: This video comes down tonight at midnight. Don’t wait... [Click Here To Learn More]( Santa Barbara, California June 11, 2021 Editor’s note: Infrastructure spending has been a hot topic since Trump entered the White House. Over four years later, no agreement has been reached. Can the White House and Congress finally reach a deal? Today, Dr. Nomi Prins updates you on where things stand. [Dr. Nomi Prins] Dear Reader, Since the mid-twentieth century, when most of this country’s modern infrastructure systems were first established, the population has doubled. Not only are American roads, airports, electric grids, waterways, railways, and more distinctly outdated, but also today’s crucial telecommunications sector hasn’t ever been subjected to a comprehensive broadband strategy. Worse yet, what’s known as America’s “infrastructure gap” only continues to widen. The cost of modernizing our infrastructure has expanded to $5.6 trillion over the next 20 years ($3 trillion in the last decade alone), according to a report by the American Society of Civil Engineers (ASCE). Now some estimates even run as high as $7 trillion. In other words, as old infrastructure deteriorates and new infrastructure and technology are needed, the cost of addressing this ongoing problem will only escalate. According to ASCE, “The nation’s economy could see the loss of $10 trillion in GDP [gross domestic product] and a decline of more than $23 trillion in business productivity cumulatively over the next two decades if current investment trends continue.” Not Just Transportation As early as 2015, ASCE researchers found that the overall number of dams with potential high-hazard status had already climbed to nearly 15,500. At the time, the organization also discovered that nearly four out of every 10 bridges in America were 50 years old or more and identified 46,154 of them as already structurally deficient. Those numbers would obviously be even higher today. And yet, in 2021, what Americans face is hardly just a transportation crisis. The country’s energy system largely predates the twenty-first century. The majority of American electric transmission and distribution systems were established in the 1950s and 1960s with only a 50-year life cycle. ASCE reports that “More than 640,000 miles of high-voltage transmission lines in the lower 48 states’ power grids are at full capacity.” That means our systems weren’t and aren’t equipped to handle excess needs — especially in emergencies. Now, is the American Society of Civil Engineers completely unbiased? Maybe not — a major infrastructure upgrade would mean plenty of jobs for civil engineers. But that doesn’t mean the problem isn’t real. The fact is, the country is critically overdue for infrastructure development. Wherever you look, there are flashing red signs that America needs to kick it into gear on infrastructure investment and start renovating and constructing yesterday. Recommended Link [Is this a ticking time bomb to another financial collapse?]( [Read more here...]( If you own stocks, you may want to cash out immediately. And if you hold dollars, you need to see this chart. Because, according to one of America's most respected economists, the data in this chart signals a possible COLLAPSE ahead for the dollar. What he revealed is not pretty. But you still need to hear it... [Click Here For Details]( Recent Examples Some examples of recent problems illustrating this situation include: - A freight train derailment and chemical fire in Iowa due to a bridge collapse - Closure of an Interstate 40 bridge between Arkansas and Tennessee due to a cracked steel beam - Cyberattacks on American infrastructure and food processing facilities (such as the Colonial Pipeline and JBS, the world’s largest meat processing plant) - A decade-long $435 billion backlog in road rehabilitation work - And much, much more. You could probably point to several items in your hometown or city that could use some sprucing up. Infrastructure could be the great equalizer in our economy, if only the Biden administration and Congress had the fortitude and foresight to make it happen. So, where do things stand today? The good news is that there’s actually much more common ground between what the White House wants to do -- in terms of the size of its infrastructure package proposal -- and what the GOP agrees upon with the Biden administration. What Exactly Is Infrastructure? Over the past new month, The White House and the GOP have been getting closer and closer to some sort of agreement on the size of the infrastructure package. The complications come down to two main sticking points between the political parties. These are: - How to fund the infrastructure package. - How to define what infrastructure is. Let’s tackle the second point first because if we take away politics, the issue is more straightforward. The Republicans consider infrastructure to be physical assets, such as roads, airports, ports and pipes. The Oval Office agrees on this part. However, the White House and the Democrats also consider social spending programs and health and education as social infrastructure, which they consider part of the larger infrastructure umbrella. The GOP would not consider certain key elements of the full Biden plan in their umbrella. So, if it were raining, the Democrats’ umbrella would be bigger, but the Republicans’ umbrella would still be useful in keeping dry. That includes school construction and repair (the Biden administration has proposed a $100 billion increase in current spending for this relative to the GOP’s proposal of $0) and home and community-based care (for which the Biden administration has proposed a $400 billion increase and the GOP $0). There were other infrastructure projects such as transportation safety and electric vehicle infrastructure that the GOP did not identify in terms of additional spending in their proposal. Recommended Link [Have you heard George Gilder’s latest extraordinary prediction yet?]( [Read more here...]( He was dubbed the “Tech Prophet” by Forbes… once won the White House Award for Entrepreneurial Excellence… and his work is respected by tech insiders like Bill Gates and former Google CEO Eric Schmidt… And recently, Gilder went on camera to explain how a new tech revolution is about to hit America… one that could unleash up to $15.1 trillion in new wealth. According to Gilder, if you don’t understand this new tech you could miss out on one of the greatest moneymaking opportunities for thirty five years. [Click Here To Learn More]( Can They Meet in the Middle? The administration’s proposal would cost roughly $1.2 trillion. Meanwhile, the GOP’s proposal would cost nearly $1 trillion. That’s only about a $200 billion difference. And let’s face it, that's not much nowadays compared to the outstanding $29 trillion of U.S. public debt. So, let’s leave social infrastructure aside for now. Not because it’s unimportant but because a bipartisan agreement on physical infrastructure is more realistic. We also know that the White House and GOP agree on most of what needs to be done — physically. The differences in the amounts for each main area looks something like this: - Road and Bridges: Republicans – $91 billion, President Biden — $120 billion - Broadband Access: Republicans – $65 billion, President Biden — $65 billion - Airports: Republicans – $25 billion, President Biden — $25 billion - Rails: Republicans – $22 billion, President Biden — $80 billion - Drinking-Water/Wastewater: Republicans — $56 billion, President Biden — $111 billion Surely, they can get even closer on roads, bridges, rails and water. A water bill has already passed the Senate on a bipartisan basis and is awaiting the House. How Do We Pay For It? The Republicans have suggested using funds that had been previously authorized for COVID-19 relief programs (but were unused so far) to finance the $575 billion gap between expected revenue from the U.S. Highway Trust Fund and its previous $928 billion offer (which had risen to $978 billion by last Friday). The White House has refused. Those funds will remain in the COVID-19 relief program bucket for now. President Biden has suggested paying for it by raising taxes on the wealthy and corporations. At first, he wanted to raise the corporate tax rate to 28% from 21% (the Trump administration had cut this rate from 35% in 2017). As I said would happen, President Biden soon backtracked on that 28% level down to 25%, and there is still room for negotiation. Meanwhile, the White House also just proposed a 15% global corporate tax minimum rate. That means that wherever mega-firms sell their products, they have to pay taxes up to a 15% level. Small business owners have to pay taxes on the goods and services they sell to their cities, states and the federal government without fancy accountants to hide it offshore. Why shouldn’t mega-companies have to pay something remotely similar? (I think companies will choose to book their sales from lower tax rate locations, but that’s a topic for another time.) The bottom line is America’s infrastructure needs serious attention. Estimates reach upwards of $7 trillion for the total bill. The cost won’t get any cheaper as the list of projects grows and building materials get more expensive. So, reaching an agreement soon makes economic sense. The question is, can the White House and Congress get it done? Regards, Nomi Prins for The Daily Reckoning P.S. Rightly or wrongly, many Americans believe the 2020 presidential election was rigged. But I’m convinced that [something is “rigged” on Wall Street.]( And it could be hitting you in your wallet right now. In fact, [I’m convinced this is the #1 threat to your money right now.]( If you have any money in the markets at all, [you’ll want to watch this video ASAP.]( But hurry, you don’t want to sit around on this. [Go here now.]( --------------------------------------------------------------- Thank you for reading The Daily Reckoning! We greatly value your questions and comments. Please send all feedback to [feedback@dailyreckoning.com.](mailto:dr@dailyreckoning.com) [Nomi Prins][Nomi Prins]( is an American author, journalist, and public speaker. She is the editor of Nomi Prins' Dark Money Millionaire and contributor of Jim Rickards' Strategic Intelligence. She has worked as a managing director at Goldman-Sachs and as a Senior Managing Director at Bear Stearns, as well as a senior strategist at Lehman Brothers and analyst at the Chase Manhattan Bank. Add feedback@dailyreckoning.com to your address book: [Whitelist us]( Additional Articles & Commentary: [Daily Reckoning Website]( Join the conversation! Follow us on social media: [Facebook]( [LinkedIn]( [Twitter]( [RSS Feed]( [YouTube]( The Daily Reckoning is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Paradigm Press delivering daily email issues and advertisements. To end your Daily Reckoning e-mail subscription and associated external offers sent from The Daily Reckoning, feel free to [unsubscribe here.]( Please read our [Privacy Statement](. For any further comments or concerns please email us at feedback@dailyreckoning.com. If you are having trouble receiving your Daily Reckoning subscription, you can ensure its arrival in your mailbox [by whitelisting The Daily Reckoning.]( [Paradigm Press]© 2021 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized financial advice. We expressly forbid our writers from having a financial interest in any security they personally recommend to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. Email Reference ID: 470DRED01